How does an IVA work?

Do you have more than £15,000 worth of debt?

If so, an IVA (individual voluntary arrangement) is one solution to get rid of your debt problems. An IVA is a legal agreement which works as an alternative to bankruptcy. You pay an agreed sum each month and can be debt free in five years.

How does an IVA provide debt help?

An IVA is a formal and legally binding agreement between you and your creditors. It provides both parties with certain legal protections whilst you solve your debt problems.

With this form of debt help, you pay the agreed monthly amount, usually over 60 months, informing our IPs (Insolvency Practitioners) of any change of circumstance which could affect your income or assets.

What are the minimum criteria for an IVA?

• Three or more creditors
• Struggling with payments
• More than £15,000 of unsecured debt
• Proof of employment
• UK citizen (IVA specific for England and Wales)

How do I start an IVA?

You will firstly need to complete an IVA questionnaire. An Insolvency Practioner from the Helpline Network will then work with you to determine your present financial situation. We will then draw up the proposal which is forwarded to your creditors, allowing you to get your finances back on track.

The Direct Debt Solutions has advice teams dedicated to ensuring you get the best advice on all debt and insolvency issues. Call 0800 015 3135 to speak with an advisor in complete confidence.

Speak to a Direct Debt Solutions advisor free on 0800 015 3135 and we'll advise which debt solution would best suit your debt problems or take the Express Debt Test now and find out which solution is best for you.

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